The Statement "As More of a Good Is Consumed, the Utility

question 54

Multiple Choice

The statement "as more of a good is consumed, the utility a person derives from each additional unit diminishes" is known as the:

• A) water and diamond paradox.
• B) law of diminishing marginal utility.
• C) law of total utility.
• D) marginal-utility-to-price ratio equalization rule.

---

Definitions:

Holistic Critical Thinking

A comprehensive analytical approach that combines different perspectives and aspects to assess and solve problems or make decisions.

Scoring Rubric

A set of criteria and standards used to systematically evaluate specific objectives or outcomes.

Give Reasons

The act of providing logical or rational explanations for actions, decisions, or beliefs.

Holistic Critical Thinking

An approach to critical thinking that considers all aspects, factors, and perspectives of an issue comprehensively.